QUESTION - “My dad would like to exchange 80 acres of corn/soybean ground in Illinois for a piece of waterfront property in eastern Oregon. The property in Illinois is all corn, with some “natural/conservation??? along the drainages. The property in Oregon is made up of three parcels. One parcel is natural sage brush, the other parcel has grape/apple/cherry orchard and a house.
My family would live in the house and continue to operate the orchard. In the future, my dad would retire and build on the parcel that is currently in sage brush.
Does this qualify as like-kind?? Other complications??
ANSWER- The answer to this question isn’t a simple one. The easy part of this is the actual real estate. If the property qualifies as investment property then it can be exchanged for other investment property. However, with the crops, or if there are assets, etc. with the property those types of things can be exchanged but not for real estate. Please contact us at 877-395-1031 to discuss the transaction further.
Tags: 1031, 1031 exchange, All States, crops, farm, investment property, qualifying property